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Italian shares finish slightly lower

Italian shares finished slightly lower as profit-taking among industrials and book-squaring on the last day of the August account took the market off the day's highs.

The Mib all-share index finished 0.04 percent lower at 10,519 while the blue chip Mib30 index was 0.07 percent down at 15,627. Lira strength against the mark continued to lend support to the market.

Shares in Telecom Italia Mobile TIM.MIsurged for the third day running, finishing 2.91 percent higher at 2,300 lire. TIM stocks have shot up on the strength of foreign broker recommendations which sucked in a stream of domestic buy orders.

Brokers estimated trading volumes at around 700 billion lire with46.7 million TIM shares changing hands.

Fiat FIA.MIlost 0.93 percent on profit-taking to close at 6,150 lire, while Generali GASI.MIalso retreated, shedding 0.83 percent to close at 40,550 lire.

With blue chip stocks treading water or in decline due to profit-taking, brokers hunted for bargains among smaller stocks.

BCI BCMI.MIrose against the trend among banks, finishing 1.15 percent higher at 3,970 lire.

"There is a feeling that the share has underperformed compared with Credito Italiano CRDI.MIand that its value has not been fully realized," a Milan broker said. Credito fell 0.67 percent to finish at 2,090 lire.

Investors took profits on Ambroveneto BAVI.MIafter the bank's recent technical rebound and it closed at 4,900 lire. The bank has been in steady decline since a recent shareholders' pact put it out of reach of a hostile takeover bid.-Reuter